Paneer Tikka Masala with Creamy Tomato-Cashew Sauce

Why You’ll Love This Recipe

• Restaurant-quality flavor at home: smoky, charred paneer in a luxe tomato–cashew gravy.
• Balanced and crowd-pleasing: mild heat, bright acidity, gentle sweetness, and creamy finish.
• Make-ahead friendly: marinate in advance and freeze the sauce for ultra-fast weeknights.
• Flexible cooking: broiler, grill pan, or outdoor grill all work beautifully.

Grocery List

• Produce: Red onion (2 total), red bell pepper, green bell pepper, fresh cilantro, lemon, garlic, fresh ginger
• Dairy: Paneer (14 oz/400 g), thick plain yogurt (1/2 cup), heavy cream (1/4 cup)
• Pantry: Raw cashews, tomato puree (14 oz), ghee or neutral oil, sugar, salt, kasuri methi (dried fenugreek), garam masala, Kashmiri chili powder, ground cumin, ground coriander, turmeric, whole spices (bay leaf, green cardamom, cloves, cinnamon)

Full Ingredients

For the Paneer Tikka (Marinade and Skewers)

• 14 oz (400 g) paneer, cut into 1-inch cubes
• 1 large red onion, cut into 1-inch petals
• 1 medium red bell pepper, 1-inch pieces
• 1 medium green bell pepper, 1-inch pieces
• 1/2 cup thick plain yogurt (Greek or hung curd)
• 1 tbsp lemon juice
• 1 tbsp ginger-garlic paste
• 1 tsp garam masala
• 1 tsp Kashmiri red chili powder (mild heat, vivid color)
• 1/2 tsp turmeric
• 1/2 tsp ground cumin
• 1/2 tsp ground coriander
• 3/4 tsp fine salt
• 1 tbsp neutral oil (plus a little for the pan or rack)
• Bamboo or metal skewers (optional)

For the Masala Sauce

• 2 tbsp ghee (or neutral oil)
• 1 bay leaf
• 4 green cardamom pods, lightly crushed
• 4 whole cloves
• 1-inch cinnamon stick
• 1 small yellow onion, thinly sliced
• 1 tsp ginger-garlic paste
• 14 oz (400 g) tomato puree
• 1 tsp Kashmiri red chili powder
• 1 tsp ground cumin
• 1 tsp ground coriander
• 2 tsp sugar
• 1 tsp fine salt (plus more to taste)
• 1/2 cup (70 g) raw cashews, soaked 10 minutes in hot water, then blended with 1/2 cup water until smooth
• 1/2–3/4 cup additional hot water, to thin the sauce as needed

To Finish

• 1 1/2 tsp kasuri methi (dried fenugreek), crushed between palms
• 3/4 tsp garam masala
• 1/4 cup heavy cream
• 2 tbsp chopped fresh cilantro, plus extra for garnish
• Lemon wedges, for serving

Step-by-Step Instructions

Step 1: Soak cashews and prep

Pour boiling water over the cashews and soak for 10 minutes. Meanwhile, cut the paneer into 1-inch cubes and prep the onion petals and bell peppers into 1-inch pieces. Line a sheet pan with foil and set a lightly oiled rack on top (or lightly oil a broiler-safe pan).

Step 2: Make the marinade and coat the paneer and veggies

In a large bowl, whisk the yogurt, lemon juice, ginger-garlic paste, garam masala, Kashmiri chili powder, turmeric, cumin, coriander, salt, and 1 tbsp oil until smooth. Add the paneer cubes, onion petals, and bell peppers; toss gently to coat. Cover and refrigerate for 30 minutes (up to 24 hours).

Step 3: Char under the broiler (or grill pan)

Position an oven rack 6 inches from the broiler and preheat the broiler on High. Thread paneer and vegetables onto skewers (or arrange in a single layer on the prepared rack). Broil 3–4 minutes per side (6–8 minutes total) until lightly charred at the edges. Alternatively, cook on a hot, lightly oiled grill pan over medium-high heat for 8–10 minutes, turning to char. Rest 5 minutes, then slide off skewers.

Step 4: Build the masala base

In a wide sauté pan over medium heat, add 2 tbsp ghee. When shimmering, add the bay leaf, cardamom, cloves, and cinnamon; bloom for 30 seconds until fragrant. Add the sliced onion and cook, stirring, for 6–8 minutes until soft and golden at the edges. Stir in 1 tsp ginger-garlic paste and cook 60 seconds.

Step 5: Add tomatoes and spices

Stir in the tomato puree, Kashmiri chili powder, ground cumin, ground coriander, sugar, and 1 tsp salt. Bring to a gentle simmer and cook for 8–10 minutes, stirring occasionally, until the sauce reduces and the raw tomato aroma mellows and bright orange-red oil beads appear at the surface.

Step 6: Make it creamy with cashews

Blend the soaked cashews with 1/2 cup water until completely smooth and creamy. Pour the cashew cream into the pan along with 1/2 cup hot water. Simmer 5 minutes over low heat, stirring, until the sauce is glossy and velvety. Add up to an additional 1/4 cup water if you prefer a looser consistency. Taste and adjust salt or sugar as needed.

Step 7: Add the char and finish

Fold the charred paneer, onions, and peppers into the sauce. Sprinkle in the crushed kasuri methi and garam masala. Stir in the heavy cream and simmer gently for 2–3 minutes to marry the flavors. Remove the bay leaf, cardamom pods, cloves, and cinnamon if desired.

Step 8: Rest and serve

Turn off the heat and let the curry rest for 5 minutes; this helps the paneer stay tender and the sauce thicken slightly. Garnish with chopped cilantro. Serve hot with basmati rice or warm naan and lemon wedges.

Pro Tips

• Pat paneer dry before marinating so the yogurt clings well and chars beautifully.
• Use Kashmiri chili for brilliant color with gentle heat; substitute 1/2 tsp hot chili powder if you prefer spicier.
• Do not overcook the paneer. Pull it as soon as you see light char; overcooking makes it rubbery.
• For ultra-smooth restaurant-style sauce, blend the finished sauce (before adding paneer) with an immersion blender and strain through a fine sieve.
• Crush kasuri methi between your palms right into the pan to release its aroma at the very end.

Variations

• Dairy-light: Swap half-and-half for cream and use 1 tbsp ghee instead of 2.
• Vegan option: Substitute firm tofu for paneer, coconut yogurt for dairy yogurt, and coconut cream for heavy cream. Use oil instead of ghee.
• Nut-free: Replace cashews with 1/3 cup hulled sunflower seeds or use 1/2 cup heavy cream plus 2 tbsp milk powder for body.

Storage & Make-Ahead

Marinate paneer and veggies up to 24 hours in advance. The sauce can be made 2–3 days ahead and refrigerated, or frozen for up to 2 months; thaw overnight and rewarm gently. Store leftovers (combined) in an airtight container for 3–4 days. Reheat over low heat with a splash of water until just hot; avoid boiling to keep the paneer tender.

Nutrition (per serving)

Approximate: 605 calories; 44 g fat; 23 g protein; 30 g carbohydrates; 5 g fiber; 950 mg sodium (varies with salt). Values are estimates based on 4 servings.